Financial Management articles from September 2006

Financial Management archives from September 2006

On the accuracy of different measures of q.
September 22, 2006... Tobin's q is widely accepted as a proxy for an underlying "true" q, which is assumed to characterize a firm 's incentive to invest. Researchers have developed numerous methods for computing q. This article assesses the measurement quality of...

Stock liquidity and investment opportunities: evidence from index additions.
September 22, 2006... We examine the relation between stock liquidity and investment opportunities in a sample of firms experiencing an exogenous liquidity shock. We find a positive relation between changes in capital expenditures and changes in stock liquidity,...

Institutional environment and sovereign credit ratings.
September 22, 2006... We use a sample of 86 counties to examine the cross-sectional determinants of sovereign credit ratings. We find that the quality of a country's legal and political institutions plays a vital role in determining these ratings. A...

Which daily price is less noisy?
September 22, 2006... The daily efficient price is the price that would prevail if the market were frictionless. I show that volume-weighted average price (VWAP) provides a less noisy estimate for the unobservable efficient price as compared to the closing price....

Corporate social performance and stock returns: UK evidence from disaggregate measures.
September 22, 2006... This study examines the relation between corporate social performance and stock returns in the UK. We closely evaluate the interactions between social and financial performance with a set of disaggregated social performance indicators for...